“We may expect Nifty to touch 5000 or lower in a short span of time. It is better to avoid being on the long side even if the market bounces up.”

Some newspaper wrote about the value buys and we warned strongly not to heed to their writings. At the end of the day, the market proved us right.

Yesterday, the emerging market fell like pack of cards. Jakarta Composite Index tumbled 5.58% in a single trading session. The Borsa Istanbul 100 Index in Turkey fell 1.2%. Thailand's SET Index dropped 2.4%. At the end of the day, the CNX Nifty lost 93.10 points to close at 5,414.75. The rupee slumped below 63 against the dollar.

The ardent followers of wealthbull know what we predicted about the market as early as 17th January 2013. You may check it using the following link:

Even at that time we clearly mentioned that any close below 5950 would spoil the rhythm of the market.

What to expect from the market now?

The market is clearly in the strong hands of the bears. The Sensex has lost 1,060.07 points or 5.47% in two trading sessions. The market participants are hesitant to make new bets as they expect a shift in Federal Reserve policy now. While the market may bounce back on technical grounds, one should avoid any bets on the bullish side of the market. Market conditions do not favor bulls as the rupee is facing horrid time ahead. The market smiles at the FM and RBI governor for not acting properly at the crisis time. Nifty may sink deep into the reds and it may be possible to see Nifty in the range of 4700-4800 in a couple of months